A Good Way to Give

I have written before about charitable giving. The site http://www.goodsearch.com/ seems to provide an easy way to benefit your favorite charity, while doing something you would do anyway. I do not know much about the site, but it sounds like a great concept and you may want to investigate it further.

Do You Have Anything to Give?

An estate plan directs the disposition of one's assets after they are gone. Oftentimes those of us with minor children provide that any assets left for our children are to be held in a trust in order to provide for their health, education and maintenance. Even a well drafted trust will not accomplish these goals if there are insufficient assets available for the family.

Life insurance is a great tool to provide for one's family after death. The proceeds of any life insurance policy can be directed to a trust for minor children, thereby providing the trust with the necessary fuel it needs to function. As a part of the estate planning process, you may want to consider evaluating your life insurance situation. It can make a tremendous difference for your family.

Everyone Has a Will

Many people have taken the time to sign a Last Will and Testament. Those who have never signed a Will may wonder what happens to their assets and their family in the event of death. Well, there is a good news and bad news. The good news is that even those who die without signing a Will actually do have a Will. The bad news is that their State Legislature wrote it for them.

Let's assume you are married and have minor children and have not signed a Last Will and Testament. In that case your actual "Will" basically reads as follows:

LAST WILL AND TESTAMENT

OF

JOHN DOE

(Courtesy of the State of Alabama)

Introductory Clause. I, JOHN DOE, a resident of and domiciled in the County of Jefferson and State of Alabama, have decided not to execute a Will and thereby rely on the default rules of succession provided by the Alabama Legislature.

I am married and my wife’s name is: JANE DOE.

I have two living children: JEFF DOE and JOHN DOE, JR.

ITEM I

Direction to Pay Debts. My Administrator shall pay all debts and expenses of my estate.

ITEM II

Disposition of the Estate. My estate shall be distributed as follows:

(1) Fifty Thousand Dollars ($50,000) shall pass to my wife, JANE DOE.

(2) The remainder of my estate shall be further divided as follows:

(a) One-half of my estate shall pass to my wife, JANE DOE.

(b) One-half of my estate shall be distributed in equal shares to my children, JEFF DOE and JOHN DOE, JR.

I understand that I am unable to make any provisions for charity.

ITEM III

Naming the Personal Representative. I hereby waive any right to appoint someone to manage my estate. I am going to rely on the Probate Court to appoint an Administrator. Further, in the event my family does not petition said Court within Forty-Five (45) days of my death, the County Administrator (a government appointed attorney) will have the right to serve as my Administrator. I did not waive the requirement to post a bond and therefore my Administrator must pay for a bond premium out of the assets of my estate.

ITEM IV

Guardian for Minor Children. If my wife should predecease me, I hereby relinquish all right to name a guardian for my minor children and will rely on the Probate Court to appoint someone to raise my said children for me.

ITEM V

Provisions for Beneficiaries. If any beneficiary has attained the age of Nineteen (19), then his or her share of property shall be distributed to him or her outright. If any beneficiary is a minor, such minor shall place his or her assets in a court created conservatorship (until age 19). I recognize that a conservatorship is a costly and cumbersome mechanism.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my seal this the _____ day of ___________, 2008.


NO SIGNATURE NEEDED

Festina Lente

I am reluctant to admit it, but I am a big fan of Latin. One of my favorite quotations is "festina lente," which means to "make haste slowly." I really believe this saying describes the appropriate approach to preparing a Will. You want to move quickly because a Will is not valid until signed. Nevertheless, you want to be deliberate and cautious with your decisions, as they may have long-lasting effects. Finding the perfect balance between festina and lente will result in an effective and efficient plan for you and your family.